Muscatine woman avoids prison for theft from city

MUSCATINE, Iowa (AP) — A former Muscatine city employee has received a suspended prison term after paying back $8,500 of the money she stole from low-income tenants at her sentencing.

Diana Fry, a clerk who worked for the city 34 years, pleaded guilty to stealing more than $15,500 over a three-year period. She was ordered Friday to pay that back, plus $5,600 to cover the cost of a state audit.

The audit found Fry repeatedly pocketed portions of security deposits, rent and other payments made by tenants in public housing units. She altered receipts, ledgers, and computer data to cover it up.

County Attorney Alan Ostergren said the $8,500 payment was required for Fry to avoid prison under her plea agreement. It was the amount of the deductible for the city’s insurance policy.

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